Calls mount for CoJ to cancel ‘R200’ electricity surcharge

Pressure is mounting on the City of Joburg to rescind the R200 surcharge, which has sparked a public outcry.

Residents have taken to social media, lamenting their already dire economic conditions after City Power announced the introduction of the R200 fee for prepaid customers last week, which will go towards services and network capacity.

This means when a customer purchases electricity the R200 will be recovered upfront before any consumption-related charges. It will actually cost South Africans R230 including VAT.

The power utility also announced the implementation of a 12.72% tariff increase from July 1 as approved by the NERSA.

The fee will be deducted from the customers’ purchase of electricity every month.

Indigent customers, who earn less than R6 000 per month or have financial challenges, have been urged to apply for an exemption at their nearest Service Delivery Centre.

We pay tarrif prices, that covers the expenses to provide electricity. The 200 added is another way to fund their lifestyles, they are already taking the money we pay for electricity for themselves, they jst added another income stream. If they stop stealing, prices wouldnt be hi

— DMANGH (@dmangh_official) July 4, 2024

Several political parties and civil rights organisation, OUTA, have come out guns blazing, describing the charge as daylight robbery.

#OUTA and our #JoburgCAN division are investigating ways to get this scrapped since it will have serious financial repercussions on our communities, especially the poorest + most vulnerable.
Joburg must scrap new R200 prepaid electricity fixed charge! https://t.co/W2QY9yFwkf

— OUTA (@OUTASA) July 3, 2024

BOSA’s Ayanda Allie says the government is really out of touch with the reality of South Africans.

She says the city is punishing prepaid users for opting out of the post-paid method.

“I mean it goes without saying that we are living in extremely difficult economic conditions, so customers should not be punished for the failure of the state to protect infrastructure. The city must conduct consequence management without punishing residents for the crimes they did not commit.”

ActionSA says they will return to the council to have the decision revoked, adding that City Power must go back to the drawing board to find better ways to collect its revenue.

The party’s caucus leader, Nobuhle Mthembu, says City Power must collect its money from defaulting residents and state institutions such as the Departments of Health, Education, Housing and Transport.

She says residents should continue voicing their concerns and ensuring their objections are heard.

“ActionSA will continue to explore all available mechanisms to bring an end to this and will hold the governing chaos coalition accountable.

“In the same breath, as we approach the 2026 Local Government Elections, residents must also remember the disastrous and uncaring tenure of the current government.”

Joburg Mayor, Kabelo Gwamanda, has defended the charge saying it is intended to provide revenue to fund the City’s investment into new electricity infrastructure and for the maintenance of existing infrastructure.

He says the surcharge is the outcome of various Council resolutions since 2018. According to the Mayor, the city had to postpone its implementation in 2020 due to COVID-19.

“The new electricity surcharge is a necessary intervention to create fairness and equality in the City’s tariffs regime. Post-paid customers have been paying the surcharge and only pre-paid customers were excluded. What the introduction of the surcharge now seeks to do, is to end the unfair subsidisation of prepaid customers by post-paid customers.”